Lessons from Formula 1 (1-3)

In 2005 Mark Jenkins, Richard West and I wrote ‘Performance at the Limit, Business Lessons from Formula 1 Motor Racing’ published by Cambridge University Press. Our research and extensive interviews led us to create 10 lessons; increased to 12 lessons in our 2016 third edition.

In recent years, other books and articles have appeared sharing business wisdom from how F1 racing teams operate. It seems our 12 lessons have held up well as the sport and business of Formula 1 have evolved. During the coming weeks I will revisit those lessons.

1.      FOCUS, FOCUS, FOCUS

The rigor of a 24-race season puts a premium on getting the right job done at the right time especially given the industry’s changing regulatory constraints, budgetary limitations, and tight deadlines. Interviewing the late Sir Frank Williams, he told us that when signing cheques, he would always ask: ‘How will this make the car go faster?” That intensive focus rubbed off on everyone in the team.

2.      ONE TEAM – ALIGNMENT OF GOALS OF INDIVIDUALS, TEAMS, AND PARTNERS

In F1, as in all businesses, there needs to be shared goals towards which teams and sub-teams are striving. Individuals need to understand how their actions contribute to the team’s result. This is exemplified at MercedesF1 where Deputy Team Principal, Bradley Lord, said they call it teamship - ‘whatever your role, we are in it together through thick and thin.’

3.      BUILD THE ORGANIZATION AROUND INFORMAL PROCESSES, NETWORKS AND RELATIONSHIPS

Given its strong technology orientation, Formula 1 is a very people-driven business. In F1, structure emerges from relationships across functions and departments, rather than from rigid roles and job descriptions that do not relate to the pressurized world in which the teams operate. The Formula 1 organization is an emergent structure that optimizes and facilitates the potential of individuals and their relationships, rather than determining and micro-managing interactions. This holistic view was exemplified by Ross Brawn, Technical Director, when during a visit to Maranello he told us, “It is not an engine, it is not an aero-package; it is a Ferrari.”